As many of you have experienced yourselves, the pricing structure of the iPhone 3G S is completely ridiculous. Some people are getting them for $199 for a 16GB and $299 for a 32GB. Others get the middle rate of $399 16GB and $499 32GB. Finally an unlucky few have to pay full price of $599 for 16GB and $699 for 32Gb.

Personally I am stuck with the highest rate (business accounts are not eligible for the middle rate or something stupid) while other iPhone 3g users who are upgrading are stuck with the middle rate.

The issue is there are 2 yr contract renewals all around. If people are committing to an extra 2 yrs on their contract they should receive the lowest rate. Plain and simple.

Apple has shown in the past that they listen to their (outraged) customers. Remember last year where Apple gave $100 credit to early iPhone 3g adopters because they dropped the prices significantly only a month after it went on sale.

I'm one for cheaper products, but people did sign a contract, and they knowingly bought an Apple product, which usually have a refresh cycle of every year, if anything, complain to ATT to make a specific contract for a 1 year renewal, but I doubt that would happen. It's probably doing you a favor right now by making these absurdly high prices and forcing you to wait one more year, which at that time, a newer iPhone will be exsistant. Imagine, sign another 2 year contract now, say ATT gives the lower subsidized price, they lose money. Next year comes, the same people who were complaining are complaining again about pricing, at this rate, Apple and ATT would be driven into the ground because they lose money (I don't know if they do, but I can imagine they have their reasons for having such high prices). iPhone2G to 3G was something, improved many things hardware and software wise where 3G to 3GS is just a hardware refresh, and some "exclusive" apps, that to me just isn't worth the complaining for right now. My father has a 3G, and as much as I would love to get him the 3GS, I know next year Apple will have a new one, and isn't that 4G/LTE stuff coming soon? Don't you think the next iPhone is going to better hardware next year than this year? Just my thought, and not trying to start an arguement.

I'm one for cheaper products, but people did sign a contract, and they knowingly bought an Apple product, which usually have a refresh cycle of every year, if anything, complain to ATT to make a specific contract for a 1 year renewal, but I doubt that would happen. It's probably doing you a favor right now by making these absurdly high prices and forcing you to wait one more year, which at that time, a newer iPhone will be exsistant. Imagine, sign another 2 year contract now, say ATT gives the lower subsidized price, they lose money. Next year comes, the same people who were complaining are complaining again about pricing, at this rate, Apple and ATT would be driven into the ground because they lose money (I don't know if they do, but I can imagine they have their reasons for having such high prices). iPhone2G to 3G was something, improved many things hardware and software wise where 3G to 3GS is just a hardware refresh, and some "exclusive" apps, that to me just isn't worth the complaining for right now. My father has a 3G, and as much as I would love to get him the 3GS, I know next year Apple will have a new one, and isn't that 4G/LTE stuff coming soon? Don't you think the next iPhone is going to better hardware next year than this year? Just my thought, and not trying to start an arguement.

If AT&T did 1-year contracts, the lower capacity iPhone would cost $400 and the higher one would cost $500 and people would be complaining about that.

And I plan on upgrading every year and just keep renewing my contract. A lot of people take the 3G S lightly, but it's a lot more amazing than just a compass and more memory.

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The 3G was subsidised by the carriers and the pricing structure was worked out over X months of your contract for them to get as much money as possible out of us.

By subsidising the the new one within the X months of the original contract they screw up their figures and lose money.

The problem is that as the iPhone has progressed, im pretty sure it has not become more expensive to produce. If anything, i'm more than positiveproduction costs have become cheaper.

The original iPhone was over £300 to begin with, then reduced to £269 here in the UK to boost sales, eventually dropping to below £150 to get rid of remaining stock of the 2G. (I think early adopters even got refunded the difference after the price drop)

The PAYG price for the 3GS is £538, 200% that of the price of the 2G 2 years ago.

so thats only £32 / £26 more on each handset to purchase a Factory Unlocked iPhone 3GS. I mean, really?

Either way, £538 for a MOBILE PHONE is absolutely rediculous. This is allot of money, the kind of money that pays a couple months rent / buys a new car, you know, real world stuff. I am lucky enough to have the spare cash right now to go and buy this Friday if i wanted - but i won't and unless it changes i won't in the next year.

The reason the average consumer didnt want the iPhone before was because they had to outright pay £269 for a handset they wanted for free. The excuse was the iPhone was to expensive.

Now the iPhone only appears to be cheap becausethee out of contract / PAYG handset prices are rediculous, making the subsidised prices look like a good deal. The PAYG prices are far to high for the average consumer, almost forcing us into LONG contracts.

I love my iPhone and have been a loyal user since the 2G. However, i am in no way blind or stupid and can clearly see that us as consumers are being screwed by both Apple and our carriers. The iPhone should never have been allowed to be subsidised by the carriers. If the 3G S does not come down in price, and this is the trend that follows with all future iPhones, then my 3G will be my last iPhone.

Just to reiterate - the iPhone 3G S is 200% the price of the 2G 2 years ago. We are in a recession but facing extortionate inflation on our iPhones ....

Cancel your contract and sign a new one. That's what I did. Plain and simple. This might be out of Apple's hands guys. I think with the subsidized pricing thing ATT is the Boss. Best of luck though.

Originally Posted by reeko

Either way, £538 for a MOBILE PHONE is absolutely rediculous.

Plenty of phones sell for even more than that. The company figures if you don't want to pay, you don't get one. To YOU that might be too much money but to many it just isn't. I also think paying half a million dollars for a car is ridiculous. Doesn't mean that it doesn't happen all the time.

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I once prayed to God for an iPhone, but quickly found out He didn't work that way...so I stole an iPhone and prayed for His forgiveness.

A dog is the only thing on earth that loves you more than you love yourself. - Josh Billings

I bought the 16GB 3G the day it came out for $299. I don't remember getting $100 Apple credit a month later. In 07 they cut the price of the 1st gen $200 and gave early adopters $100 Apple credit. Back to the topic. Remember you did sign a 2 year contract to get the subsidized price. It has always been this way even before the iPhone. Users have never been able to get a fully subsidized phone w/o finishing their 2 year contract. Like someone else mentioned, AT&T would loose money if they let people sign a new 2 year contract every 12 months. With that being said; I do not agree with this petition, but I'll sign it anyway just because like everyone else who signs it, I'm a cheap bastard.

Dude, the average joe was not happy paying £269 2 years ago for the 2G.

it wasnt until the 3G got subsidised and appeared cheaper that the iPhone got really popular.

Just because every other idiot will happily sign a 24 month contract which sees them pay a total price for the handset of about £1000, because at the time of signing they are getting a £538 handset for £99 / FREE it sounds like such a good deal.

And the carphonewarehouse.com site for the UK shows a Sony Ericsson C905 as the most expensive phone (apart from the iPhone) at £399. £138 cheaper than the iPhone.

If anyone is reading this, seriously, £538 is far too much money. £440 is far to much money. At these price points you gotta step back to reality and think about the real world and what you really need.

I am completely disgusted at these price points and if anyone can explain why before places like France + Italy had to pay ALLOT more for their iPhones because they were factory unlocked, but now the UK LOCKED iPhone prices are almost identical?